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lys-0071 [83]
3 years ago
7

You purchase one IBM July 120 put contract for a premium of $5 (per share). You hold the option until the expiration date when I

BM stock sells for $123 per share. You will realize a ______ on the investment. (Hint: Recall that each put covers 100 shares.)a. $200 profitb. $200 lossc. $300 profitd. $300 losse. $500 loss
Business
1 answer:
Art [367]3 years ago
8 0

Answer: $200 loss

Explanation:

When you purchase an option, you assume that the share price will gain a higher amount that the premium paid. In this case, it did not.

For this put option, you paid a premium of $500 ($5 * 100)

This is because there are 100 shares in each put.

The stock rises to $123 and you decide to sell at this price, you will achieve $300 increase on the shares:

(123 - 120) * 100 = 300

The shares had a gain of $300 but you paid $500, leaving you with a loss of $200 on the investment.

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On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $44,000 and
faust18 [17]

Answer: $3,575

Explanation:

Opening balance for Allowance for Noncollectable Accounts for 2022 is closing balance for 2021 = $1,300.

Cool wear wrote off $775 during the year which would come out of the allowance;

= 1,300 - 775

= $525

An allowance of $4,100 was determined for the year which means that the Bad debt expense is the difference between the determined allowance and the current balance because this is the amount that the account had to be increased by to cater for the bad debt expense.

= 4,100 - 525

= $3,575

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3 years ago
Is this correct? How do I do this?!
frutty [35]
Yes your answer is correct
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The local Kennel Club is a not-for-profit organization with gross receipts of $23,500 for the current tax year. Under the Intern
allsm [11]

Answer:

A) Form 990-N.

Explanation:

Form 990-N is used by not-for-profit organizations with annual gross receipts under $50,000, and it must be filed electronically.

Most small not-for-profit organizations can use the Form 990-N, except:

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On March 1, Wright Company purchased new equipment for $58,500 by paying cash. Other costs associated with the equipment were: t
OLga [1]

Answer:

$70,100

Explanation:

The computation of the equipment recorded on a balance sheet is shown below:

= Purchase of new equipment + transportation cost + sales tax paid + installation cost

= $58,500 + $2,700 + $4,700 + $4,200

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We simply added the above four items so that the recorded value of an equipment could come

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